State-owned enterprises (BUMN) has a commitment to innovation and transformation that is environmentally friendly. SOE Minister Erick Thorhir stated that state-owned companies will build an environmentally friendly ecosystem which is summarized in Eco Lifestyle.
“Eco Lifestyle is our key (SOEs) for decarbonization.” said Erick in a webinar entitled Environmentally Friendly Clean Energy Transition, last October.
The focus of SOE’s green activities includes the use of new and renewable energy (EBT) such as: geothermal and solar power. Geothermal power generation is carried out through holding PLN and Pertamina. With a development potential of 2,132 Megawatts, it is projected that Indonesia can become the country with the second largest installed geothermal capacity in the world.
Meanwhile, the utilization of solar power is carried out through floating PLTS in reservoirs owned by SOEs. The latest PLTS Cirata, West Java is the first floating PLTS in Indonesia as well as the largest in ASEAN with an electricity production capacity of up to 145 MW. Through this project, there is a potential emission reduction equivalent to 214 thousand tons.
In line with this effort, PLN is also encouraged to transform from the use of fossil-powered generators. The target is that in 2055, 50.1 GW of the power plant will be transformed into a cleaner one.
From the mining sector, ex-mining land reclamation is carried out by companies such as MIND ID and PT Bukit Asam Tbk (PTBA). In his presentation, Erick stated that the reclamation of former PTBA mining land alone could absorb carbon from the company’s total emissions of up to 200 thousand tons per year. It is projected that 5,200 ha of land will be available for reclamation in 2050.
Not to forget, SOEs are also encouraging the electric vehicle ecosystem to be implemented in Indonesia. One of them is through the production of the Gesits electric motor by PT Wijaya Karya Tbk. (WIKA) and formation holding PT Indonesia Battery Corporation (IBC), to support the manufacture of electric vehicle batteries independently and to support the recycling process.
At the household level, the use of induction stoves to reduce the use of LPG is also encouraged by PLN through collaboration with a number of private parties to produce affordable electric stoves.
(Katadata Research Team)
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